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<p>The Teachers’ Pensions Scheme (TPS) is principally designed and operated to support
recruitment and retention of high-quality teaching staff in maintained schools, who
constitute the vast majority of TPS members. All maintained schools, including academy
trust schools, are required to participate in the TPS for their teaching staff.</p><p>Independent
schools participate in the TPS voluntarily, with many independent schools already
choosing not to participate. Teachers at participating independent schools represent
a small proportion of the overall TPS membership.</p><p>All public service pension
schemes, including the TPS, are subject to actuarial valuations every 4 years. This
helps maintain the sustainability of the scheme by taking a fair and reasonable assessment
of the current cost of providing pensions into the future and setting contribution
rates accordingly. Amongst a wide range of data and assumptions involved, the actuarial
valuation process takes account of changes in member numbers.</p><p>Any impact from
independent schools choosing to cease participating in the TPS will, therefore, be
assessed as part of the actuarial valuation currently taking place. This is due to
be reported next year. It is too early in the process to predict the impact, but the
reduction in future pension benefits being built up will be considered, as will the
reduction in contribution income received.</p>
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